Bangladesh has long had ambitions of transitioning towards a cashless, tech-driven economy. When the proposal was made to have digital banks in the nation, experts and the general population all expressed excitement, hoping that it would accelerate the nation’s embracing of digital finance.
To that end, however, it is disappointing that when it comes to digital finance, we are not even scratching the surface of what is possible. More than a year after Bangladesh Bank issued its first-ever digital bank licences, not a single one has even begun operations - a glaring setback for our nation.
There is no questioning the potential digital banking has. With over 60 million unbanked adults - 35% of the population - digital banks could be a game-changer to bring affordable financial services to those most marginalized in our nation. In addition, it could also be a significant boost for small traders and those who operate in our nation’s vast informal sector.
The economic benefits are equally compelling, with experts estimating that digitizing transactions across retail, agriculture, and the RMG sector could add 1.7% to the GDP - over $6 billion annually - and simultaneously creating close to half a million new jobs in digital financial services.
It is therefore so disappointing that we are not seeing this get the attention it deserves, with regulatory delays and institutional unreadiness all but threatening to squander these potential opportunities.
Suffice to say, Bangladesh must act decisively. The vision of a cashless, inclusive Bangladesh is still possible, but it will not happen without policy-makers, regulators, and industry leaders giving digital finance the importance that it warrants.